Veritas Provides $6 Million to Fixture Supplier
Veritas Financial Partners (VFP) announced it provided a $6 million senior secured revolving line of credit for a NJ-based designer and installer of signage, displays and fixtures.
The company came to VFP seeking growth working capital and payment guarantees to vendors overseas. During its early years of operation, the company was able to demonstrate stable growth without adding debt by reinvesting its cash-flow back into the business. However, when the company’s business growth accelerated it could no longer fund its working capital needs without lender support.
Veritas Financial successfully closed a $5 million senior secured revolving line of credit for the company secured by accounts receivable and inventory. As part of the credit facility, VFP provided a trade letter of credit of up to $4 million, which was used to guarantee payment to its Chinese vendors. The letter of credit allowed Chinese suppliers to be paid on a COD basis which allowed the company to secure better prices and lower their cost of goods sold. As the company grew, Veritas increased its commitment and funded an additional $1 million for a total aggregate credit facility of $6 million.